SingPost's Q3 operating profit rises 46% to S$38m
SINGAPORE Post (SingPost) S08 reported group operating profit of S$38 million for the Q3 ended Dec 31, 2021, up 46 per cent year on year from S$26 million.
In a business update on Friday (Feb 25), the group said its strong performance for the quarter was driven by the year-end seasonal peak.
Revenue grew 24 per cent on year to S$437 million, driven mainly by Famous Holdings, e-commerce logistics growth and the consolidation of Freight Management Holdings (FMH) after it became a subsidiary on Nov 30, 2021.
Group operating expenses for the quarter grew 23 per cent to S$400 million from S$325 million the previous year, driven by volume-related expenses in line with higher freight forwarding and e-commerce logistics volume.
In the domestic post and parcel e-commerce logistics segment, volumes rose 50 per cent due to higher activity as well as one-off nationwide distribution projects, such as for Covid-19 testing kits and mouth gargles. Looking ahead, SingPost said it is pressing on with its Future of Post initiative to leverage infrastructure and capture e-commerce growth in Singapore.
The group's freight forwarding business under Famous Holdings continued to benefit from higher volume and sea freight rates caused by global supply chain disruptions.
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Despite lower international post and parcel (IPP) revenue, profit from this business segment was on the uptrend. The group expects gradual improvement in its IPP business as and when flight capacity out of Changi Airport recovers more significantly. It is also working towards integrating its international operations.
The group's property segment also reported higher profit due to lower rental rebates given to tenants. SingPost said occupancy at SingPost Centre remained relatively high despite a challenging leasing market, and that it is in the process of securing new tenants for expired leases.
In Australia, the group highlighted its acquisition of FMH as an important step towards its goal of competing as a significant player in a "large and fast-growing market". The group's consignment volume in the country grew 7 per cent over Q3 from the previous year, mainly due to the addition of FMH's volume for December 2021.
"We will continue to build scale and capabilities, as well as drive synergies between our existing businesses (in Australia)," it stated.
Shares of SingPost ended Friday S$0.01 or 1.6 per cent higher at S$0.635, after the news.
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